Arina plans to form an investment portfolio that comprised of 50 percent investment in Share X, 25 percent investment in Share Y and 25 percent in Share Z. The following are the estimated returns for all the three types of financial assets: Year Probability (P) Expected
Arina plans to form an investment portfolio that comprised of 50 percent investment in Share X, 25 percent investment in Share Y and 25 percent in Share Z. The following are the estimated returns for all the three types of financial assets: Year Probability (P) Expected
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Arina plans to form an investment portfolio that comprised of 50 percent investment in Share X, 25 percent investment in Share Y and 25 percent in Share Z.
The following are the estimated returns for all the three types of financial assets:
Year |
Probability (P) |
Expected Return (%) of Financial Assets
|
||
|
|
X |
Y |
Z |
Strong |
0.48 |
10 |
15 |
20 |
Weak |
0.52 |
10 |
6 |
1 |
Calculate:
- Expected return for each share.
- Expected return for investment portfolio of share X, Y and Z.
- Standard deviation for the investment portfolio.
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